Bad credit isn't bad for your career

Mar 17, 2017

Sections Economics Video

Prospective employers sometimes ask applicants for credit-history information, which has generated concern—and a fair number of anecdotes—about bad credit creating a hurdle for job seekers. But Chicago Booth's Neale Mahoney, together with his coauthors, looked at what happens when a bankruptcy flag is removed from someone's credit report. Though predictably, access to credit improves, the researchers find that the removal of the flag has virtually no impact on employment, wages, or the likelihood of finding a better job.